Definition

A part or portion of something, often used in finance to refer to a specific segment of a larger investment or security that has different characteristics, such as risk or maturity.

Example

The investment was divided into several tranches to appeal to different types of investors.

Conversation

I just learned about how they structure loans with different tranche levels.

Oh really? What does that mean exactly?

Well, it means they break down the loans into sections based on risk and return.

That sounds interesting! I had no idea finance could be so complex.

Synonyms & Antonyms

Root Explanation

Tranche comes from Old French 'tranche' (meaning slice or piece), which is derived from the verb 'trancher' (meaning to cut). The word refers to a slice or portion of something, particularly in financial contexts where it denotes a portion of a larger sum.

Memory Tip

Think of 'tranche' as a 'slice' of something larger, like a piece of cake or a portion of money.

Visually Confused Words